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Regarding the profit incentive: providing free school lunches or medical/ hygiene supplies does not hurt profits. As the meals/supplies will still have to be sourced from the market, it probably will now be a few big contacts with big suppliers that will cover entire school districts.
The costs of these contracts will be a public burden unless they implemented a specific focus tax to pay for it, so it will come out of various broad tax pools. This means everyone pays a little bit so every kid has something to eat. Even if you don't have any kids or if your kid gets homemade lunch packs. This is where the "social" aspect comes in.
Other countries, many of them European, actually go a step in the other direction: if you do not have kids, you actually pay a premium on your income tax. And that is generally accepted, because for society to live on, obviously kids are necessary. And if you don't support society by raising kids, you at least help cover some of the associated costs. These premiums are explicitly used to fund kindergartens, schools etc..
An often valid capitalist criticism of public large contracts on infrastructure such as this is that the public offices tend to be notoriously bad negotiators, accepting worse deals than private companies would. This is because there's little to no incentive for them to reach good terms. It also makes the process more vulnerable to corruption and politicking on a grander scale. These are not guaranteed to happen, good governance can definitely avoid this. But public governance simply isn't that great to begin with in many areas.